IEA warns of imminent oil supply shortage and demand growth.

The International Energy Agency (IEA) has said that the current bearish sentiment in the oil market does not take into account the tightening oil markets. The IEA sees oil demand exceeding supply by almost 2 million barrels per day in the second half of the year. The decline in oil prices over the past few weeks contrasts with an expected tightening of the market later this year when demand exceeds supply by nearly 2 million barrels per day. Global oil supply has been lower in recent weeks due to outages in Iraq, Nigeria, and Brazil, and supply losses are set to increase in May with wildfires shutting in part of Canada’s production and OPEC+ producers starting to implement the latest cuts.